The financial press took a great interest last week in a perceived bid for Britain”s major airport operator BAA Plc by Spain's Grupo Ferrovial. However there appears to have been no talks between the two parties and BAA is reported not to be interested in any takeover.
If Ferrovial, or indeed any other overseas group, were to make a successful bid for the core operator of Britain”s highly successful commercial aviation infrastructure it would truly be a case of the chicken coming home to roost. BAA Plc was created in 1987 by the Margaret Thatcher government from the nucleus of the government-owned British Airports Authority. It finished up with the cream of the country”s airports. As part of the deal, so it would seem, Stansted would be developed at no cost to the national exchequer although to many it was obvious that Luton, with its far better surface communications and central location would make for a more sensible choice.
By linking Gatwick into the portfolio BAA Plc had a virtual monopoly of air traffic in and out of London. British Airways did not acquiesce for its own reasons, those senior managers opposed to the scheme quietly moved out by Lord King and his team.
The rest, as they say, is history. BAA Plc is today one of the world”s most successful airport operators, and whilst nothing is perfect, the London airports scenario does work, just about! Yes there have been mistakes, the current Gatwick Express crisis an example, the airport railway station needing rebuilding years ago, and the runway expansion plans are yet to be resolved, but all in all BAA has been a triumph of expediency.
What would happen if BAA Plc were to fall under foreign ownership to a proprietor only interested in the bottom line Some would say that would not make any difference to the current situation. Others would be concerned.
The bid, if it were to take place by Ferrovial, or indeed others, needs to be very, very carefully monitored. The crown jewels of British aviation require to be extremely well protected.
Malcolm Ginsberg